IE-33 - YMCA University of Science & Technology, Faridabad

Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
A GENERIC MODEL OF MULTI-ECHELON REVERSE
LOGISTICS NETWORK FOR PRODUCT RETURNS
S. Bansal 1, A.Jayant 1 , P. Gupta 1 , S. K. Garg 2
1 Department of Mechanical Engineering, Sant Longowal Institute of Engineering and Technology, Longowal,
Sangrur – 148106
2 Department of Mechanical Engineering, Delhi Technological University, Delhi-110042
Abstract
Rapid technology advances in turbulent Indian business environment have shortened the lifecycle of white
goods, resulting in the increasing number of discarded products in recent years. Due to the growing
environmental concerns, several state governments have passed new regulations in order to reduce the amount
of waste stream generated by mass consumption of the products in the society, to divert the discarded/End-of –
Life (EOL) products from landfills, and to dispose the retired electronic & mechanical assembly based products
properly. As a result, an effective reverse logistics infrastructure is required to support the product recovery
activities. In this research, a noble approach for designing reverse logistics infrastructure by privategovernment
partnership model is presented. Finally, discussion, recommendation and insight information in
operating reverse logistics real business environment is analyzed and provided.
1. Introduction
Supply chain management (SCM) can be considered as a key component of competitive strategy to enhance
organizational productivity, performance and profitability [7]. In the recent past, there has been a surge in
research that examined the impact of supply chain integration on firm performance. Most SCM publications
concern mainly procurement production, extending the concept beyond the point of sale is rare. Recently,
increased need has been recognized to extend SCM issues beyond the point of sale in industrial manufacturing.
Hence, research field of managing supply chains has been enlarged by tasks referring to the product utilization
phase (e.g. service, maintenance, and others) and to the end-of-life phase (e.g. product recovery, refurbishing or
recycling). Conceptually speaking, these additional tasks have been complementary traditional supply chains to
closed-loop supply chains [12].
Sustainability initiatives brought increasingly growing number of countries across EU and Eastern Asia to enact
legislations that would demand manufacturers to assume higher responsibilities on their end-of-life products
[35]. Sustainability is becoming one of the most desired and highly prized goals of modern industrial operations
and environmental management as the deterioration of natural environment becomes increasingly more
concerned. International Union for the Conservation of Nature and Natural Resources, the Global Tomorrow
Coalition, and the World Resources Institute establish sustainability as a desired goal of environmental
management, development and international cooperation. The term, “sustainability,” issued in numerous
disciplines and is defined in many ways according to the context to which it is applied and whether its use is
based on an ecological, social, or economical perspective. IUCN defines sustainability as improving the quality
of human life while living within the carrying capacity of supporting eco-systems. Although conceptualization of
sustainability may differ among different interest groups, the World Commission on Environment and
Development defines sustainable development, as ‘development that meets the needs of the present without
compromising the ability of the future generations to meet their own needs [6]. In many Western European
countries, “Green” parties have been initiated to deliver environmental concerns due to industrial and operational
wastes into public, social and political action. In response to globally growing concerns for sustainability,
many durable product manufacturers began to launch programs that would both reduce operational wastes and
advocate environmental safety. The intent of the ‘product take-back’ laws is to pressurize durable product
manufacturers to pursue sustainable development and to transform it into business practices that would promote
environmental welfare, while avoiding increasingly growing waste management cost charged by municipal
governments. In addition, higher customer expectations on manufacturers’ environmental responsibility have
also compelled manufacturers to assume increased responsibility with regards to placing their products on the
market. ‘Product take-back’ targets a wide variety of manufacturers of batteries, automobiles, waste packaging,
and electrical or electronic products. Instead of filling landfills, more manufacturers are urged to take back their
products for reassembling, repackaging, remanufacturing, or component recycling before redistributing to the
market. Value recovery process of returned products consists of several sequential activities: collection,
evaluation, disassembly, capture of recyclable components, and disposal of residuals as hazardous wastes [11].
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Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
2. Need of economically and environmentaly viable rl frame work
Despite growing participation within industries, most value recovery processes still remain small, independent
and highly fragmented [34]. To strategize cost efficient product take-back plan, there has been growing interest
in the development of reverse logistics that drives reverse flow of returned products from the end customers back
to the original equipment manufacturers. Efficient planning and execution of reverse logistics would provide
firms a competitive edge in the development of sustainable, yet profit-generating, business strategies. Sound
strategy and execution of reverse logistics would promote not only economic, but also environmental benefits as
value of returned products should be counted towards savings of raw material and labor. While reverse logistics
do not promise guaranteed savings, many have reported noticeable benefits: 40% less overall cost, 33% less
inventory usage, and 44% higher customer satisfaction .From environmental viewpoint, reverse logistics make
significant contribution towards reduction of hazardous waste, alleviation of landfill saturation and preservation
of scarce raw materials [12]. Reverse logistics take fundamentally different approach from forward logistics
having characteristics of highly fragmented return quantities, multiple return channels, complex transportation
routing, higher level of expected serviceability for multiple Clients and variety of disposition options. Due to
such characteristics, realization or execution of reverse logistics often entail many new challenges. Two major
challenges of reverse logistics network design would include cost of value recovery process and low return rates
from customers. Recent research reported the cost of reverse logistics accounts for nearly 44% of entire product
take-back process [41]. Additionally, Green peace’s survey in 2007 revealed that many manufacturers struggle to
achieve beyond 20 percent of product return rate. Challenges in product take-back processes entail careful
evaluation of aforementioned two key issues of reverse logistics network design in order to minimize the total
operating cost, while promoting higher customer product return frequency.
However, the reverse flow of products from consumers to upstream business has not received much
interest [13]. Yet, reverse logistics is a big business opportunity. According to the survey in 1999 that reverse
logistics executive council the cost of handling, transporting and determining the disposition of returned products
was $35 billion annually for U.S firms [14]. In 2000 remanufacturing in the U.S. was a #35 billion per year
industry [15]. Up to now, rates are still increasing. In India e-waste generation from electronics and computers
industries is approximate 1050 tons and if we count imported used products from developed countries then this
figures goes up to three times. From abroad used computers and electronic goods send to India by illegal
practices and received by big scrap dealers. The scrap dealers take outs useful components from used products
like circuit boards, switches, condenser, capacitor, batteries, transformers, copper wires, aluminums wires and
other precious metals by unscientific techniques and unsafe methods. By this process various dangerous gases
and metal particle like cadmium, mercury, bromine flame, poly- chlorination, Bi-finials are mixed in the
environment and causes for cancer, respiratory and brain related diseases in the society.
3. SAFE HANDLING OF E-WASTE
Today world is facing problem of e-waste. The life of this e-waste is very long and it is not biodegradable and
remains in the environment for long period, Product life cycle has been very short and day to day companies are
launching new advance products due to developments of advance technologies in the world. That is main reason
for the creation of e-waste in the society. In India more than 10 million computers are under use and more than 2
million computers are outdated. At present in our country here is no rule or directives from government
regarding retreatment and recycling of e-waste. To save the environment and society there is need to develop an
economically viable and safe practice of reverse logistics/recycling model. This model may be helpful to rescue
of products/components in environment friendly manner. We hereby developed a conceptual holistic generic
frame work of forward and reverse supply chain networks as shown in figure 1.
3.1 Secondary Markets
To generally conceptualize, reverse logistics is the process of retrieving the product from the end consumer for
the purposes of capturing value or paper disposal. Activities include transportation, warehousing, distribution
and inventory management. Transportation is usually the largest component of reverse logistics costs. Reverse
logistics services include product returns, source reduction , recycling, materials substitution, reuse of materials,
waste disposal, refurbishing, repair and remanufacturing [18] Reverse logistics -and reverse logistics researchhas
traditionally emphasized green logistics i.e. the use of environmentally conscious logistics strategies [18,19].
While environment aspects of reverse logistics are critically important, many firms are also recognizing the
economic impact of reverse logistics [20] Practically all business must deal with returns of some natures because
of issues such as marketing returns (i.e. customers change their minds or find the product unacceptable), damage
or quality problems, overstocks, or, merchandise that is brought back for repairs, refurbishing, or
remanufacturing. NOREK (2002) provides an indication of the sheer volume of returns generated in many
876

Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
companies. He notes that returns range from 3% to as high as 50% of total shipments across all industries;
various industry studies put the true costs of returns at 3-5% of sales [21].
Suppliers/
Raw
Secondar
y
Green
Store
(Spare
Remanufactur
OE
Green
Green Manufacturing
Producti
on
Re-Assembly/reuse unit
Defectives
Figure 1 Conceptual Holistic Frame work of Generic Closed Loop Supply Chain
In brief, the management of the reverse flows is an extension of traditional supply chains with used product or
material either returning to reprocessing organizations or being discarded. Reverse supply chain management is
defined as the effective and efficient management of the series of activities required to retrieve a product from a
customer and either dispose of it or recover value. The importance of studying reverse supply chains has
increased in recent years for several reasons:
Sales opportunities in secondary and global markets have increased revenue generation from previously
discarded products.
1) End-of-life take-back laws have proliferated over the past decade both in the European Union and in the
United States, requiring businesses to effectively manage the entire life of the product [22, 23].
2) Consumers have successfully pressured business to take responsibility for the disposal of their products
that contain hazardous waste [24].
3) Landfill capacity has become limited and expensive. Alternatives such as repacking, Re-manufacturing
and recycling have became more prevalent and viable [25, 26]
In conclusion, become of effective reverse logistics in daily operations, firms can to foster a sustainable
competitive advantage and increase revenues in a highly competitive market.
4. Green supply chain management operation
Some of the key challenges of GSCM such as integrating remanufacturing with internal operations,
understanding the effects of competition among remanufacturers, integration product design, integrating
remanufacturing and RL with supply chain design are discussed as under.
4.1 Green manufacturing and remanufacturing operation
This is a very important area within green operations. The techniques for minimum energy and resource
consumption for flow systems in order to reduce the use of virgin materials are based on three fields of study:
pinch analysis, industrial energy [10] and energy and lifestyle analysis. Logistics represent up to 95% of total
costs (stock 1998 in recycling. Automobile, electronic, and paper recycling are the most common examples of
product recovery the purpose of repair is to return used products to working order. The quality of repaired
877
Inventory
( d
Waste
Remanufactured
Plant
Green
Distribut
Custom
Collection
Centre/
3PL
Inspection
/
Uncontrolla
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Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
products is generally lower than the quality of new products. The purpose of refurbishing is to bring used
products up to a specified quality. Analysis of remanufacturing facilities for household appliances and
automotive parts by [21] reveals that cleaning and repairing are the most critical steps in the re manufacturing
process.
4.2 Organizational Size and Environmental Practice
It is seen whether resources and capabilities associated with different sized organizations play a role in adopting
GSCM practices. Determining whether smaller organizations are adopting at greater, lesser one even equal rate
as compared to medium and larger organizations for environmental practices sets the foundation for practical and
research issues. D inferences among these organizations will influence different strategies that can be applied by
supply chain and logistics partners, investors, professional organizations and government policy makers to aid
smaller or larger organizations or both when seeking to adopt these GSCM practices and innovations. For
example, if larger organizations are adopting practices earlier than their smaller counterparts. Then a diffusion
mechanism through collaborative partnerships with smaller organizations may be a policy that should be
encouraged.Yet, if all organizations seem to be lagging in a particular GSCM practice adoption, supply chains,
umbrella professional groups or even regulatory agencies may play a larger role in diffusing these innovative
practices.
4.3 Recent trends and examples in GSCM
In recent years, some organizations have begun relying on their supply chains to improve their business
performance and create value for their end customers. Manufacturers also are calling on their suppliers more
frequently to create innovative ideas that exploit new emerging technologies, and reduce costs during the design
and development of their products [18]. In some instances, organizations are even relying on their suppliers to
deliver state-of-the-art process technology that they cannot develop internally. Consequently, enterprises wishing
to minimize their environmental impacts during product design are learning that their ability to do so often is
dependent on their ability to manage their increasingly complex supplier relationships. For instance, in 2002,
Hewlett-Packard established its Supply Chain Social and Environmental Responsibility Policy. The company
also instituted a supplier code of conduct. Combined, these efforts have extended Hewlett-Packard’s corporate
social responsibility commitment by incorporating its global supply base and reducing its supply chain risks.
4.4 Capabilities for Adopting GSCM
There are numerous capabilities required to adopt GSCM, Organizations have to develop their knowledge-based
competencies by guaranteeing the environmental quality of incoming goods.GSCM practices require
organizations to have strong inventory control systems. These systems reduce redundant stock materials and
unnecessary inputs in the production process. Organizations that rely on these systems should manage materials,
productive capacity and other organizational information. At their core, GSCM rely on what on Deming’s (1986)
continuous improvement model.GSCM practices leverage continual improvement processes that reduce the
impact of supplier inputs on the organization’s final product. Collaboration across internal departments is
essential to maintaining robust GSCM practices. For instance, in utilizing GSCM,an organization must
coordinate its product design department with its marketing department and its suppliers in an effort to minimize
waste and environmental impact at every node in the supply chain [18].However, traditional organizational
structures generally are fragmented with purchasing departments operating separately from marketing and sales,
and operations functioning independently from human resources, with each having their own goals.
4.5 Top Antecedents of GSCM
4.5.1Management Commitment
Implementation of GSCM practices in any manufacturing environment is a strategic decision, as it requires
significant amount of time, effort and resources. Min et al. [21] mentioned that one of the major obstacles for
implementing environmental policies is the lack of top management support. Kroon [11] proposed top-level
support as one of critical elements for the successful implementation of GSCM.Zsidisin and Siferd (2001),
Trowbridge (2001), and Rice (2003) mentioned that top management must be committed to complete
environmental excellence.Hu and Hsu (2006) demonstrated analytically that top management support is the most
important item for the successful implementation of GSCM practice in the Taiwanese electrical and electronics
industries.
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4.5.2 Government’s Initiative
Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
The government should ignite, encourage and promote the green activities carried out by the manufacturing
supply chain.Zhu et al. (2005) mentioned that China has encouraged (pressured) GSCM practice adoption to help
spur economic development. One can find literatures which also claim government regulation as the major driver
of environment/green efforts of manufacturing companies (Green et al., 1996; Handfield et al., 1997; Walton et
al., 1998; Eagan and Kaiser, 2002; Scupola, 2003; Lin, 2007; and Peng and Lin, 2008).The government
manufacturing companies should become role models to others. They should come out with transparent
legislation for environmental responsibility. Environmental regulations such as EuP (Eco-Design of Energy-
Using Products), REACH (Registration, Evaluation, and Authorization of Chemicals), ELV (End of life Vehicle
Directive), WEEE (Waste from Electrical and Electronic Equipment) and RoHS (Restrictions on Hazardous
Substances) of the European Union are putting pressure on the companies for adopting green practices. One can
find similar types of laws in other countries like China, Taiwan, Korea, Japan and the US. Such laws compel the
manufacturing companies to closely look into the production processes and supplier selections. Within a few
years, products will be sold in most parts of world under such legislation. The government should apply pressure
so as to compel the companies to become green without any compromise.
4.5.3 External Pressures for Adopting GSCM
GSCM may be considered complimentary management practices relate to the institutional pressures that
encourage their adoption. Institutional pressures persuade organizations to undertake similar strategic actions
(Hoffman, 1997; Scott, 2001) to increase their external legitimization (DiMaggio and Powell, 1983; Hoffman
and Ventresca, 2002). Regulatory pressures are often associated with an organization’s decisions to adopt GSCM
practices (Birett, 1998). These pressures arise from threats of non compliance penalties and fines (Davidson and
Worrell, 2001) and requirements to publicly disclose information about toxic chemical releases(Konar and
Cohen, 1997).For instance, regulatory changes in automotive paints have pressed car manufacturers to require
their suppliers to reduce their use of regulated chemicals in the production process(Geffen and
Rothenberg,2000). In addition to regulatory pressures, Market Pressures may influence an organization’s
decision to adopt on GSCM practices (Rao, 2002; Gupta and Piero, 2003). Over the last ten years, market actors
have been placing greater pressures on organizations to consider their impacts on the natural environment
(Hoffman, 2000). Overall, 15 percent of US consumers routinely pay more for green products, and another 15
percent seek green products if they do not cost more (Ginsberg and Bloom, 2004). While these findings suggest
that markets are creating opportunities for environmental friendly organizations, the majority of consumers still
are not influenced by a company’s proactive environment practices. However, these same customers may be
persuaded to change their purchasing decisions if a company violates environmental laws or emits high levels of
toxins (Prakash, 2000). As a consequence, EMS and GSCM adoption may provide a vehicle for organizations to
‘signal’ to market participants that their environmental strategies adhere to or exceed generally accepted
environmental standards. Doing so may lead to greater acceptance of the organization’s strategic approach
(DiMaggio and Powell, 1983) and insulate organizations from competitor’s criticisms (King and Lenox, 2001).
EMS and GSCM adoption also may help organizations develop an environmentally conscious reputation. Such a
re-reputation may invite patronage from consumers and generate opportunities for business with other
organizations that value these principles (Darnall and Carmin, 2005). Finally, organizations are subjected to
Pressures from the community that includes environmental groups, community groups, media, labor unions
and industry associations (Hoffman, 2000). Each of these groups can marshal public support for or against an
organization’s environmental performance (Clair, Milliman and Mitroff, 1995; Turcotte, 1995).
4.5.4 Green Procurement
Green procurement is defined as an environmental purchasing consisting of involvement in activities that include
the reduction, reuse and recycling of materials in the process of purchasing. Besides green procurement is a
solution for environmentally concerned and economically conservative business, and a concept of acquiring a
selection of products and services that minimizes environmental impact Supplier selection: (1) purchase
materials or parts only from “Green Partners” who satisfy green partner environment quality standards and pass
an audit process in following regulations for the environment-related substances (2) consider suppliers who
acquire ISO 14000, OHSAS18000 and/ or RoHS directives(3) select suppliers who control hazardous substances
in company’s standard lists and obtain green certificate achievements EPP is the act of purchasing products or
services that have a less adverse effect on human health and the environment.
4.5.5 Green Manufacturing
Green manufacturing is defined as production processes which use inputs with relatively low environmental
impacts, which are highly efficient, and which generate little or no waste or pollution. Green manufacturing can
lead to lower raw material costs, production efficiency gains, reduced environmental and occupational safety
879

Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
expenses, and improved corporate image. Activities in green manufacturing are: Hazardous substance control:
(1) lead free-replace other substances such as bismuth, silver, tin, gold, copper (2) rinse parts with clean water
instead of using chemicals and reuse water (3) quality control in inputs at vendor site and recheck before
processing Energy-efficient technology: (1) reduce power consumption in products such as ramp load/unload
technology in HDD (2) increase product lifespan resulting in higher efficiency and productivity.
4.5.6 Green Distribution
Green distribution consists of green packaging and green logistics. Packaging characteristics such as size, shape
and materials have an impact on distribution because of their effect on the transport characteristics of the
product. Better packaging along with rearranged loading patterns can reduce materials usage, increase space
utilization in the warehouse and in the trailer, and reduce the amount of handling required. Activities in green
distribution are Green packaging: (1) downsize packaging (2) use “green” packaging materials (3) cooperate
with vendor to standardize packaging (4) minimize material uses and time to unpack (5) encourage and adopt
returnable packaging methods (6) promote recycling and reuse programs. Green logistics/transportation: (1)
deliver directly trouser site (2) use alternative fuel vehicles (3) distribute products together, rather than in smaller
batches (4) change to modal shift.
4.5.7 Reverse Logistics
One of the collective solutions that industries have come up with is the development of the reverse logistics that
focus on the value recovery of returned products for recycling or remanufacturing. Reverse logistics refers to the
logistics management skills and activities involved in reducing, managing and disposing packages or products.
Srivastava defines reverse logistics as “Integrating environmental thinking into supply chain management
including product design, material sourcing and selection, manufacturing processes, delivery of the final product
to the consumers as well as end-of-life management of the product after its useful life”. A growing responsibility
towards the environment and governmental regulations, and increasing awareness of valuable commercial
opportunities in collecting, recycling, and reusing products and materials stimulate the development. One of the
obvious challenges of reverse logistics is reverse distribution of goods and information; which fundamentally
differs from that of forward logistics in terms of direction of material and information flow and their respective
volume. Due to its difficulties in handling, reverse logistics cost exceeds $35 billion dollars per year for US
companies. For above reasons, many companies treat reverse-logistics as a non-revenue-generating process
which would often result in a very few resources allocated to this part of the supply chain. However, more and
more firms now realize that reverse logistics is a business process by itself with growing attention towards
sustainability and environmental responsibility. Hawken et al. envision economic benefits of as much as 90%
through reduction of energy and materials consumption. Practice of reverse logistics entails a series of tasks to
capture value of products returned for recycling.
Product acquisition to obtain the products from end-users
• Transshipment from point of acquisition to a point of disposition
• Testing, sorting, and disposition to determine products’ economic attractiveness
• Refurbish to facilitate the most attractive economic options: reuse, repair, Remanufacture, recycle, or
disposal
• Remarketing to create and exploit secondary markets
As reverse logistics fundamentally differ in many aspects of operations from forward logistics, strategic
development of competitive reverse logistics entails careful evaluation, design, planning and control. Product
acquisition would initiate at initial collection centers (ICPs) and consolidation would continue before reaching
centralized return center (CRC) or manufacturer who would process remanufacturing.
5. Industry response towards reverse logistics
In many ways, industries have been focusing on maximizing financial or productive capital gain while
consuming natural and social capital as needed. Global environmental awareness, however, have brought
environment friendly or green initiatives in every aspect of product operations. Xerox’s accomplishment of
‘zero-waste to-landfill’ engineering can be a very good example of ‘cleaner production [15]. Increasingly many
industries have adopted concepts of cleaner production and developed many strategic approaches and practices
that increase re-manufacturability or recyclability of products or eliminate harmful wastes. Waste Electric and
Electronic Equipment (WEEE) directive of the European Union; for instance, obliges manufacturers of electric
and electronic equipment to assume extended responsibility by taking back equipments reached end-of-life state
for re-processing and recovery.
880

Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
Radical transformation did more than mere improvement of corporate images. The financial impact has been
remarkable. 3M’s 3P (also known as Pollution Prevention Pays) project has saved the company more than $1
billion in its first year by aggressively limiting harmful by-products and wastes. Kathy Reed of 3M noted
“Anything not in a product in a product is considered a cost”. Timberland’s redesigned shoeboxes saved nearly
15% of virgin packaging material. AMD’s modified ‘wet processing’ technology reduced the water usage from
eighteen to less than now six gallons per minute. Besides many notable individual achievements, the
sustainability issues must be dealt at supply chain managements’ level as today’s industries become more and
more interdependent on one another in every aspect of product and service delivery. Efforts of environmental
management and operations should no longer be limited to issues of localized product operations. Rather, it
needs to be assessed in a higher level of Operations, which encompass production, transportation, consumption
and post-disposal Disposition. Given such a significant and increasing level of attention toward issues related
sustainable development, or sustainability, it is imperative to define sustainability on supply chain managements’
level to discuss environmental as well as economic benefits as a whole.
6. Government and industry partnership
The problem of e-waste can be solved by joint efforts of industry and government. The government should
ignite, encourage and promote the green activities carried out by the manufacturing supply chain. China has
encouraged (pressured) GSCM practice adoption to help spur economic development. One can find literatures
which also claim government regulation as the major driver of environment/green efforts of manufacturing
companies. The government manufacturing companies should become role models to others. They should come
out with transparent legislation for environmental responsibility. Environmental regulations such as EuP (Eco-
Design of Energy Using Products), REACH (Registration, Evaluation, and Authorization of Chemicals), ELV
(End of Life Vehicle Directive), WEEE (Waste from Electrical and Electronic Equipment) and RoHS
(Restrictions on Hazardous Substances) of the European Union are putting pressure on the companies for
adopting green practices. One can find similar types of laws in other countries like China, Taiwan, Korea, Japan
and US. Such laws compel the manufacturing companies to closely look into the production processes and
supplier selections. Within a few years, products will be sold in most parts of world under such legislation. The
government should apply pressure so as to compel the companies to become green without any compromise.
There is a need to make policies by the Indian government to handle the problem of huge e-waste generated by
the producers/manufacturing industries. Municipalities can play lead role in the collection of waste/used/EOL
products from the society with collaboration of industries and 3PL provider to optimize the use of EOL products.
We hereby developed an integrated model of forward and reverse supply chain for efficient utilization of EOL
products in India with the concept of government and private partnership strategy.
The structure of the presentation was based on functions that could be considered as drivers within the
green supply chain/closed loop supply chain. These are Procurement, in-bound logistics, production, distribution
and out-bound logistics, and reverse logistics procedure with joint collaboration of government and private
partnership model.
7. Conclusion & Discussion
The underlying aim in considering the end-of-life phase of a product’s life is to reduce impacts on the natural
environment. The ultimate goal is sustainable development “meeting the needs of the present without
compromising the ability of future generations to meet their own needs”. The perspective of this work is on
manufacturer involvement in managing end-of-life products with the infrastructure support of local government
like, municipal Corporations, Nagar Councils, Village Councils and Third Party Logistics Service (3PL)
provider. This study focuses on the Original Equipment Manufacturers (OEM) relationship with government
agencies to handle the product returns
The generic model presented in the paper represents total perspective and look at the problem of used product
return from an overall environmental or societal perspective. The strategic perspective to end-of-life
management with government support has received very limited attention [12], especially the role of
manufacturers which is expected to grow [14]. Waste collectors can be municipalities, third parties, or logistics
service providers. Depending on their location in the world, end users may have to pay to dispose of the product.
From waste collection the product will be sent to a landfill, an incinerator, or a recycling facility. Incineration
means that energy is recovered from the product, whereas recycling refers to recovering material value from the
product [8]. From the recycling facilities the recovered materials may end-up back in the original supply chain of
the product or an alternative supply chain. Recycling facilities may in some cases be owned by manufacturers, as
is frequently the case in Japan [10].
881

Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
The government should apply pressure so as to compel the companies to become green without any compromise.
There is a need to make policies by the Indian government to handle the problem of huge e-waste generated by
the producers/manufacturing industries. As per present model theme the municipalities can play lead role in the
collection of waste/used/EOL products from the society with collaboration of industries and 3PL provider to
optimize the use of EOL products. We hereby developed an integrated model of forward and reverse supply
chain for efficient utilization of EOL products in India with the concept of government and private partnership
strategy.
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